Eighteen months after MirImmune grabbed a license to RXi’s $RXII RNA tech for use in developing new cell therapies, the tiny mother ship — with a market cap of only $11 million after a steady fade of its stock price — is now looking to reel back the whole effort under a buyout option.
Based in Marlborough, MA with a group of co-founders that includes the former CEO of Sepracor, Tim Barberich, the low-profile MirImmune went to RXi last March to gain a license to a tech that could be used to develop new cell immunotherapies for cancer — a hot topic in the biotech world. Initially, RXi had reserved an option for a chunk of MirImmune.
Under the new deal, RXi is getting rights to buy up the preclinical company for about 20% of its stock and some other, undefined, incentives based on milestones.
And the public company is setting up a securities offering now to help complete the deal, evidently looking to help sell shares by touting the prospects of a deal revolving around cell therapies.
RXi has until April 5, 2017 to decide if it wants to pull the trigger.
Said Dr. Alexey Eliseev, CEO of MirImmune:
“We treat therapeutic immune cells with RNAi compounds ex-vivo to knock down immune checkpoints, such as PD-1, LAG-3 and others. This treatment boosts the anti-tumor activity of the cells when they are subsequently administered to the patients.”
The best place to read Endpoints News? In your inbox.
Full-text daily reports for those who discover, develop, and market drugs. Join 17,000+ biopharma pros who read Endpoints News by email every day.Free Subscription